Green Tires Global Market Report 2026

A green tire refers to a circular component of an automotive tire that is fully assembled, made from environmentally friendly rubber, but has not undergone the curing process or received tread patterns. In comparison to other types of tires, such as those made from semi-aromatic, styrene-butadiene rubbers, or polycyclic hydrocarbons, green tires are designed to improve fuel efficiency and reduce greenhouse gas emissions.

Green tires find application in various vehicle types, including passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). The passenger car segment encompasses green tires manufactured specifically for use in passenger vehicles. These tires are suitable for both on-road and off-road applications. Green tires come in different sizes, such as 10 inches, 10-20 inches, and 20-30 inches, catering to different vehicle requirements. They are distributed through aftermarket and original equipment manufacturer (OEM) sales channels.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are affecting the green tires market by increasing costs of imported natural rubber, synthetic rubber compounds, silica, and advanced tire manufacturing equipment. Asia-Pacific regions such as China and Southeast Asia are most impacted due to raw material trade dependencies, while Europe and North America face higher production costs. These tariffs are elevating tire prices and impacting OEM supply contracts. However, they are also promoting local sourcing of materials, regional rubber processing, and innovation in alternative sustainable tire compounds.

The green tires market research report is one of a series of new reports from The Business Research Company that provides green tires market statistics, including green tires industry global market size, regional shares, competitors with a green tires market share, detailed green tires market segments, market trends and opportunities, and any further data you may need to thrive in the green tires industry. This green tires market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The green tires market size has grown rapidly in recent years. It will grow from $124.05 billion in 2025 to $140.4 billion in 2026 at a compound annual growth rate (CAGR) of 13.2%. The growth in the historic period can be attributed to increasing environmental regulations on vehicle emissions, growth in automotive production volumes, rising fuel efficiency standards, expansion of passenger vehicle ownership, early adoption of eco-friendly tire technologies.

The green tires market size is expected to see rapid growth in the next few years. It will grow to $228.99 billion in 2030 at a compound annual growth rate (CAGR) of 13.0%. The growth in the forecast period can be attributed to growing electric vehicle adoption, rising demand for sustainable mobility solutions, expansion of circular tire manufacturing practices, increased investments in green materials, tightening global emission norms. Major trends in the forecast period include increasing adoption of low rolling resistance tires, rising use of bio-based rubber compounds, growing demand for fuel-efficient vehicle tires, expansion of green tire manufacturing capacity, enhanced focus on emission reduction performance.

The rising demand for electric vehicles is anticipated to drive the growth of the green tires market in the coming years. Electric vehicles (EVs) are automobiles that run on electricity stored in rechargeable batteries or other energy storage systems. Green tires are utilized in electric vehicles to enhance energy efficiency, increase driving range, reduce environmental impact, and fulfill the eco-friendly expectations of EV owners. For example, in March 2024, a report published by Greenmatch, a UK-based company, indicated that electric vehicles are experiencing rapid growth, with 25% of new passenger car registrations projected to be electric by 2024, surpassing 17 million units worldwide. As of 2023, there are over 10 million EVs on the road, with more than 6 million plug-in EVs sold annually. By 2025, EVs are expected to account for 46% of light-vehicle sales. Therefore, the rising demand for electric vehicles is propelling the growth of the green tires market.

Innovation in product development, exemplified by offerings such as the Goodyear UltraGrip Performance 3, contributes to meeting the rising demand for sustainable products in the green tire market. The Goodyear UltraGrip Performance 3 is a high-performance winter tire crafted with various sustainable materials. It aims to provide excellent grip and handling in winter conditions while promoting fuel efficiency and minimizing environmental impact. Launched in January 2023 by Goodyear Corporation, this tire incorporates sustainable materials, including silica from rice husk ash and recycled polyester from plastic bottles. With features like snow protect technology, advanced wet grip technology, and 90% sustainable materials, the Goodyear UltraGrip Performance 3 exemplifies the industry's commitment to innovative and eco-friendly tire solutions.

In July 2025, CARBIOS S.A., a France-based biotechnology company, entered into a partnership with Indorama Ventures Public Company Limited to provide biorecycled monomers for manufacturing r-PET textile filaments used in tire reinforcement applications by Michelin. Through this collaboration, CARBIOS S.A. and Indorama Ventures Public Company Limited seek to accelerate the use of biorecycled PET in industrial applications, promote the shift toward circular materials, and deliver high-performance recycled polyester filaments for tire production. Indorama Ventures Public Company Limited is a Thailand-based manufacturer of PET and polyester products.

Major companies operating in the green tires market are Compagnie Generale des Etablissements Michelin, Bridgestone Corporation, Goodyear India Limited, Continental AG, Hankook Tire & Technology Co. Ltd., Pirelli & C. S.p.A., Apollo Tyres Ltd., Cheng Shin Rubber Ind. Co. Ltd., Kumho Industry Co. Ltd., Nokian Tyres plc, Zhongce Rubber Co. Ltd., Sailun Group Co. Ltd., Shandong Linglong Tire Co. Ltd., The Yokohama Rubber Co. Ltd., Kenda Rubber Industrial Company, Linglong Americas Inc., Guizhou Tyre Co. Ltd., PT Gajah Tunggal Tbk, Toyo Tire & Rubber Co. Ltd., Cooper Tire & Rubber Co., Madras Rubber Factory Ltd., Giti Tire Pte Ltd., Shandong Fengyuan Tyre Co. Ltd., Southern Rubber Industry Co., Specialty Tires of America Inc., Sumitomo Rubber Industries Ltd., Nexen Tire Corporation, Hangzhou Zhongce Rubber Co. Ltd., Double Coin Holdings Ltd.

Europe was the largest region in the green tyre market in 2025. The regions covered in the green tires market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the green tires market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The green tire market consists of sales of round tires, bias tires, medium commercial vehicles, and retail sales. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Green Tires Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses green tires market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for green tires ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The green tires market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Vehicle Type: Passenger Cars; Light Commercial Vehicles (LCV); Heavy Commercial Vehicles (HCV)
• 2) By Size: 10-20 Inch; 20-30 Inch
• 3) By Sales Channel: Aftermarket; Original Equipment Manufacturer (OEM)
• 4) By Application: On-Road; Off-Road
• Subsegments:
• 1) By Passenger Cars: Eco-Friendly Tires; Low Rolling Resistance Tires
• 2) By Light Commercial Vehicles (LCV): Green Tires For Vans; Eco-Friendly Tires For Pickups
• 3) By Heavy Commercial Vehicles (HCV): Green Tires For Trucks; Eco-Friendly Tires For Buses
• Companies Mentioned: Compagnie Generale des Etablissements Michelin; Bridgestone Corporation; Goodyear India Limited; Continental AG; Hankook Tire & Technology Co. Ltd.; Pirelli & C. S.p.A.; Apollo Tyres Ltd.; Cheng Shin Rubber Ind. Co. Ltd.; Kumho Industry Co. Ltd.; Nokian Tyres plc; Zhongce Rubber Co. Ltd.; Sailun Group Co. Ltd.; Shandong Linglong Tire Co. Ltd.; The Yokohama Rubber Co. Ltd.; Kenda Rubber Industrial Company; Linglong Americas Inc.; Guizhou Tyre Co. Ltd.; PT Gajah Tunggal Tbk; Toyo Tire & Rubber Co. Ltd.; Cooper Tire & Rubber Co.; Madras Rubber Factory Ltd.; Giti Tire Pte Ltd.; Shandong Fengyuan Tyre Co. Ltd.; Southern Rubber Industry Co.; Specialty Tires of America Inc.; Sumitomo Rubber Industries Ltd.; Nexen Tire Corporation; Hangzhou Zhongce Rubber Co. Ltd.; Double Coin Holdings Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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